ROOTSTOWN — School Board members say the district needs to move forward with its plan to seek funds for a new school building, while talk of a Joint Economic Development District (JEDD) doesn’t appear to be an option.
Board member Amanda Waesch said moving the school is not an option as there is nowhere to go.
"We are in a Catch-22 — as soon as people hear we are looking for property, the price goes up," Waesch said. "We are not in a position where we can make an offer because there aren’t finances to back it."
Additionally, the district has to pass a bond issue regardless of whether or not a JEDD exists — which it does not.
School Board President Tom Siciliano said the district’s time to obtain state funding for a new building is coming to a close, and they must try this year for the levy in order to receive funds from the Ohio Facilities Construction Commission.
"We need to move forward because our number is up and in five years that money may not be there," Siciliano said referring to the state’s share.
"It would be great to have JEDD revenue, but we have to back that with a levy ... practically speaking, we as a board have a fiduciary duty to make sure that the plan is feasible," Waesch said.
"In order to form a JEDD, you need to get signatures on a petition from the majority of the business owners and property owners within the territory, and that process can take some time," Rob McCarthy, public finance attorney with Bricker and Eckler, said. "Then there is a hearing process and notice process ... you wouldn’t want that process to tie up the facilities commission piece. Also districts cannot borrow against JEDD income revenue. Even if you could, the income tax revenue is variable and the district would not be able to find a lender that would lend you the money based on that kind of income stream."
The School Board enlisted McCarthy to assist in the discussion between the district and the township. McCarthy has handled more than 15 JEDD agreements, including one for the city of Aurora for the Geauga Lake property. He said JEDDs were started as a way to avoid annexation battles and serve as a compromise enabling townships to receive a municipal tax where they normally wouldn’t. McCarthy said the role of a school district in a JEDD is "rare."
"The parties to a JEDD are the municipal corporations and the township," McCarthy said. "The traditional model is: the land is in the township; the township partners with a municipality to collect the income tax; ... then the parties agree on the services and infrastructure.
"Schools can receive revenue from a JEDD agreement. Schools are not a party to the JEDD agreement under the statute, so usually what we do is have a separate agreement between the JEDD and the school district," he said.
Siciliano said the board feels talk of a possible JEDD hindered levy efforts last November, when the district asked voters to pass a combined 3.95-mill bond issue and a 0.5 percent earned income tax. The bond issue would have cost homeowners $138 annually per $100,000 of home valuation, plus the cost of the earned income tax, which is based on income from a job or profits from a partnership. The measure would have funded 59 percent of the $48 million proposal to build a new K-12 building complete with a new 600-seat multi-use auditorium and athletic facilities; the Ohio Facilities Construction Commission would have funded the remaining 41 percent.
The proposal from Township Trustees was for Northeast Ohio Medical University, the school district and the township to form the JEDD. However, Township Attorney Chad Murdock said NEOMED was not agreeable to the JEDD if the school district was not willing to relocate the school to allow for commercial development of the land it currently sits on directly across the street from NEOMED. Siciliano said there were two possible property options — one sold, and the other property owner refused to sell. Trustee Dave McIntyre suggested the district go to the new owner and offer more money.
Going forward, Waesh said the Board doesn’t object to a JEDD, but feels it can’t be the driving force. She said she would be willing to meet with NEOMED officials as did Rootstown Trustee Brett Housley.
Superintendent Andrew Hawkins said an online survey is launching Thursday regarding the school’s proposal for a new school. He said he encourages all township residents to log onto rootstown.sparcc.org to complete the survey.
Reporter Briana Barker can be reached at 330-541-9432, bbarker@recordpub.com.